How to determine the pricing policy of the enterprise. Pricing policy and pricing strategy

When developing a pricing policy, it is important not only to determine the price level, but also to formulate a strategic line for the price behavior of an enterprise in the market. The pricing strategy serves as the basis for deciding on the sale price in each particular transaction.

The choice of pricing policy is determined by both the goals of the firm and its size. financial condition, position in the market, the intensity of competition. Depending on these factors and the goals set, firms apply different types pricing policy.

In marketing there are different kinds pricing policy:

Cost-based pricing policy (setting prices by adding target profits to calculated production costs; setting prices with reimbursement of production costs). This is the easiest way to set a price.

This method is acceptable only if the price found with its help allows you to achieve the expected sales volume. This method, however, is still popular for a number of reasons.

First, sellers have best performance on own costs rather than on demand. By linking prices to costs, sellers make it easier for sellers because this method does not require constant price adjustments in line with changes in demand.

Second, when all companies in an industry use this pricing method, prices are set at about the same level and price competition is minimized.

Price policy high-price, or cream-skimming, selling the product initially at high prices, well above the cost of production, and then gradually lowering them. A pricing strategy that consists in setting a high initial price for a new product in order to maximize profit from all market segments willing to pay the required price; provides a smaller volume of sales with more income from each sale.

The application of this pricing policy is possible for new products, at the implementation stage, when the company first releases an expensive version of the product, and then begins to attract new market segments, offering buyers from various segments cheaper and simpler models.

For a pricing policy of high prices, the following conditions are necessary:

- high level current demand from a large number of consumers;
- the initial group of consumers purchasing the product is less price sensitive than subsequent consumers;
- unattractiveness of the high initial price for competitors;
- the high price of the goods is perceived by buyers as evidence High Quality goods;
- relatively low cost serial production provides financial benefits to the enterprise.

The benefits of this pricing policy include:

- creating an image (image) quality goods from the buyer as a result of a high initial price, which facilitates the sale in the future with a price reduction;
- Ensuring a sufficiently large amount of profit at relatively high costs in the initial period of the release of goods;
- facilitating price changes, as buyers are more accepting of price cuts than price increases.

The main disadvantages of this pricing policy is that its implementation, as a rule, is limited in time. A high price level stimulates competitors to quickly create similar products or their substitutes. Therefore, an important task is to determine the moment when it is necessary to start reducing prices in order to suppress the activity of competitors, stay in the developed market and conquer its new segments.

This type of pricing policy practically prevails in the market. It is actively used when an enterprise occupies a monopoly position in the production of a new product. Subsequently, when the market segment is saturated, there are similar products, competing products, the company goes to lower prices.

The pricing policy of low prices, or the policy of "penetration", "breakthrough" into the market, initially proposes that an enterprise sets a relatively low price for its new product in the hope of attracting a large number of buyers and gaining a large market share.

Not all companies start by charging high prices for new products, most turn to market penetration. In order to quickly and deeply penetrate the market, i.e. quickly attract the maximum number of buyers and win a large market share, they set on a new product relatively low price. This method provides a high level of sales, which leads to lower costs, allowing the company to further reduce prices. A company that uses such prices takes a certain risk, expecting that the growth in sales and the amount of income will compensate for the shortfall in profits due to a decrease in the price per unit of goods. This type of pricing policy is available for large firms with a large volume of production, which makes it possible to compensate for temporary losses in certain types of goods and market segments with the total mass of profit.

The enterprise succeeds in the market, crowds out competitors, gains a sort of monopoly position in the growth stage, and then raises the price of its products. The following conditions favor the establishment of a low price:

1. The market is very sensitive to prices and the low price contributes to its expansion;
2. with the growth of the volume of production, the costs of production and circulation are reduced;
3. low price is not attractive to existing and potential customers.

A low price pricing policy is effective in markets with high elasticity of demand, when buyers are sensitive to price changes, so it is practically very difficult to raise prices, because. this causes a negative consumer reaction. Therefore, the company, having won a high market share, is recommended not to raise prices, but to leave them at the same low level. The company is willing to reduce income per unit of output in order to obtain a large total profit due to the large volume of sales of low cost products, characteristic of the production of goods in large quantities.

The pricing policy of differentiated prices is actively used in the trading practice of enterprises, which establishes a certain scale of possible discounts and surcharges on the average price level for various markets, their segments and customers. The differentiated pricing policy provides for seasonal discounts, quantity discounts, discounts for regular partners, etc.; the establishment of different price levels and their ratio for various goods in the general range of manufactured products, as well as for each of their modifications.

Differentiated pricing takes several forms. Price differentiation by type of consumer means that different categories of consumers pay different prices for the same product or service depending on their financial situation. Losses or shortfalls in profits from selling goods at low prices to less wealthy buyers are compensated by selling them at high prices to buyers whose level of well-being allows it. Museums, for example, give discounts to students and pensioners.

In price differentiation by product type, different product variants are priced differently, but the difference is not based on differences in cost.

Price differentiation by location means that a company charges different prices for the same product in different regions, even if the costs of production and distribution in these regions do not differ. For example, theaters charge different prices for different places according to the preferences of the public.

With price differentiation by time, prices change depending on the season, month, day of the week, and even time of day. Public utility services provided commercial organizations, vary depending on the time of day, and on weekends it is lower than on weekdays. Telephone companies offer reduced rates at night, and resorts provide seasonal discounts.

For differential pricing to be effective, certain conditions must exist:

- the market should be segmentable, and the segments should differ in terms of demand;
- consumers of the segment that received a lower price should not be able to resell the product to consumers of other segments where a higher price is set for it;
- in the segment to which the company offers a product at a higher price, there should not be competitors who could sell the same product cheaper;
- the costs associated with segmenting the market and tracking its state should not exceed the additional profit received due to the difference in prices for goods in different segments;
- the establishment of differentiated prices must be legal.

The pricing policy of differentiated prices allows you to "encourage" or "punish" various buyers, stimulate or somewhat restrain sales. various goods in various markets. Its varieties are price policies of preferential and discriminatory prices.

Pricing policy of preferential prices. Preferential prices are the lowest prices, as a rule, they are set below production costs and in this sense can be dumping prices. They are established for goods and for buyers in which the seller has a certain interest. In addition, the policy of preferential prices can be carried out as a temporary measure to stimulate sales.

Pricing policy of discriminatory prices. Discriminatory prices are used in relation to incompetent buyers who are not guided by the market situation, buyers who are extremely interested in purchasing goods, as well as when pursuing a price cartel policy (conclusion of an agreement between enterprises on prices).

Pricing policy of uniform prices - the establishment of a single price for all consumers. It is easy to use, convenient, and builds consumer confidence.

The pricing policy of flexible, elastic prices provides for price changes depending on the ability of the buyer to bargain and his purchasing power.

The price policy of stable, constant prices provides for the sale of goods at constant prices over a long period. It is typical for mass sales of homogeneous goods (the price of transport, sweets, magazines, etc.).

The pricing policy of the leader's prices provides for either the ratio of the enterprise of its price level with the movement and nature of the prices of the enterprise - the leader in this market, i.e. in the case of a price change by the leader, the enterprise also makes corresponding price changes for its products.

The pricing policy of competitive prices is associated with the aggressive pricing policy of competing enterprises with their price reduction and assumes for this enterprise the possibility of pursuing two types of pricing policy in order to strengthen the monopoly position in the market and expand the market share, as well as to maintain the rate of profit from sales.

One of the important elements of the marketing mix is price. Price is an economic category, and pricing is the process of setting prices for goods and services. In market conditions, pricing is influenced by many factors: consumers, government, channel participants, competitors, costs. In practice activities specific organizations are solved difficult questions formation of prices for goods, services. There are various types of pricing policy used in marketing, which include: high price pricing policy, or cream skimming policy, low price pricing policy, or "penetration", "breakthrough" pricing policy, differential pricing pricing policy, preferential pricing pricing policy , pricing policy of discriminatory prices, pricing policy of uniform prices, pricing policy of flexible, elastic prices and pricing policy of competitive prices.

Based on the results of the first chapter, we can conclude:

1. Prices are a subtle, flexible tool and at the same time quite a powerful lever for managing the economy. The formation of the price is based on the addition of production costs (costs) actually carried out by the entrepreneur for the production of a particular product (work, service), and the minimum allowable profit from his point of view.
2. Pricing - the process of pricing goods and services. Two main pricing systems are characteristic: market pricing, which operates on the basis of the interaction of supply and demand, and centralized state pricing - the formation of prices by state bodies. At the same time, within the framework of cost pricing, the costs of production and distribution form the basis for price formation.
3. The pricing methodology is the same for all levels of pricing, and based on it, a pricing strategy is developed. The main provisions and rules for pricing should not change depending on who sets them and for how long, and this is a necessary prerequisite for creating unified system prices.
4. The pricing policy of an enterprise is determined primarily by its own potential, technical base, the availability of sufficient capital, qualified personnel, modern, advanced organization of production, and not only the state of supply and demand in the market. Even the existing demand must be able to satisfy, and at a certain time, the required volume, a specific place and while ensuring the appropriate quality of goods (services) and prices acceptable to the consumer. The basis of such activities in the field of pricing is the determination of the purpose and strategic line of development of the enterprise.

The pricing policy of enterprises (firms) with various forms of ownership should be based on the state pricing policy and the characteristics of a market economy.

The pricing policy of an enterprise is determined primarily by its own potential, technical base, the availability of sufficient capital, qualified personnel, modern, advanced production organization, and not only the state of supply and demand in the market. Even the existing demand must be able to satisfy, and at a certain time, the required volume, a specific place and while ensuring the appropriate quality of goods (services) and acceptable prices (tariffs) for the consumer (buyer).

The basis of such activities in the field of pricing is the determination of the purpose and strategic line of development of the enterprise. During her practical implementation organizational, technical, economic, informational, marketing, managerial and other actions for the formation and application of prices are primarily consistent with all the changes that the strategic line is subjected to in the life of the enterprise in the market. At the same time, price policy and pricing management play such an important role in the activities of economic entities that they constitute one of the fundamental areas of their strategic development. Price is the most important element of the market research complex, which belongs to the group of controlled factors and is the main indicator that determines income. In this regard, the essential importance of pricing for any enterprise (firm) is indisputable. Modern pricing policy is very diverse. Therefore, the study of the technology for calculating optimal, scientifically based prices is very important.

AT modern conditions market relations, there are two approaches to the process of market pricing: the establishment of individual and uniform prices. The individual price is determined on a contractual basis as a result of negotiations between the seller and the buyer. In conditions when a standardized product of mass or serial production is offered to a wide range of consumers, it is preferable to apply uniform prices. In this case, the buyer knows the price of the product, can compare it with the price of similar or interchangeable products, and make a purchase decision relatively easily.

Despite the fact that other non-price factors of competition are currently being widely developed, price still remains an essential element of competition policy that has a great impact on the functioning of the enterprise, its sustainability and development prospects. However, the pricing policy of many enterprises turns out to be insufficiently developed, which does not exclude making wrong decisions, since pricing is too cost-oriented, prices do not take into account the dynamics quickly enough. market conditions and are not considered together with other elements of the marketing system, pricing strategies are rarely linked to the overall development strategy of the enterprise itself, prices are not sufficiently structured for individual product options and market segments, and there is no information about the pricing policy of the main competitors.

The pricing policy of many enterprises (firms) is to cover costs and get a certain profit. Individual enterprises trying to sell the product as expensive as possible. This practice is indicative of the lack necessary experience and knowledge in the field of pricing. Therefore, it is important for an enterprise (firm) to study various pricing options, evaluate their features, conditions, areas, advantages and disadvantages of using them.

The main objectives of the pricing policy of any enterprise (firm) are the following.

1. Ensuring the continued existence of the company. In the presence of excess capacity, intense competition in the market, changes in demand and consumer preferences, enterprises often reduce prices in order to continue production, eliminate stocks. In this case, the profit loses its value. As long as the price covers at least the variables and part fixed costs, production can continue. However, the question of the survival of the enterprise can be seen as a short-term goal.
2. Short-term achievement of profit maximization. Many businesses want to set a price for their product that would provide maximum profit. To achieve this goal, it is necessary to determine the preliminary demand and costs for each price option. Then, on the basis of alternative selection, the price that will bring the maximum profit in the short term is selected. This assumes that demand and production costs are known in advance, although in reality it is very difficult to determine them. In realizing this goal, the emphasis is on short-term profit expectations and does not take into account long-term prospects, as well as the opposing policies of competitors and the regulatory activities of the state. This goal is typical for enterprises in the conditions of an unstable transitional economy, which is typical for modern Russia.
3. Short-term achievement of turnover maximization. The price that stimulates the maximization of turnover is chosen when the goods are produced corporately and it is difficult to determine the structure and level of production costs. Therefore, it is considered sufficient to know only the demand. To realize this goal, for intermediaries set the percentage of commissions from the volume of sales. Maximizing turnover in the short term can also maximize profits and market share in the long term.
4. Ensuring the maximum increase in sales. Firms pursuing this goal believe that an increase in sales will lead to a decrease in the cost of producing a unit of output and, on this basis, to an increase in profits. Given the reaction of the market to the price level, such firms set them as low as possible. This approach is called the pricing policy of the attack on the market. If an enterprise reduces the prices of its products to the minimum acceptable level, increases its share in the market, seeking to reduce the cost of producing a unit of goods as output increases, then on this basis it will be able to continue to reduce prices. However, such a policy can give a positive result only if there are a number of conditions: a) if the market's sensitivity to prices is very high (lower prices - increased demand); b) if it is possible to reduce production and sales costs as a result of an increase in output volumes; c) if other market participants also do not start to reduce prices or fail to withstand competition.
5. "Skim cream" from the market. It comes at the cost of high prices. This occurs when a firm sets the highest possible prices for its new products, which are significantly higher than the production prices. This pricing is called "premium". Separate market segments from the appearance of new products, even at a high price, receive cost savings, better satisfy their needs. As soon as sales at a given price are reduced, the firm lowers the price to attract the next group of customers, thereby reaching in each segment target market maximum possible turnover.
6. Achieving leadership in quality. A firm that manages to establish itself as a leader in quality sets a high price for its product in order to cover the high costs associated with improving quality and the costs of research and development carried out for this.

The listed goals of pricing policy can be implemented at different times, at different prices, there may be a different ratio between them, but in the aggregate they all serve to achieve a common goal - long-term profit maximization.

The pricing mechanism involves choosing from the entire set of strategies and pricing methods the most the best option in setting the price of goods (services), which makes it possible to achieve an economically feasible combination in the price of the differently directed interests of the producer (seller) and the consumer (buyer), since the seller is interested in reimbursing the incurred production costs and maximizing profits, and the buyer, on the contrary, is in reducing the price and respectively, in minimizing the profit of the seller.

Pricing is the process of setting a price. With a given volume of output, there are objectively two prices for the enterprise's products. The first, called the demand price, is the maximum price that buyers would be willing to pay for the amount of output that the manufacturer offers them. The second, called the offer price, is minimum price for which the manufacturer would agree to sell his products. These two prices may not match. If the demand price is higher than the offer price, then the company can manipulate prices in the resulting price band to achieve its strategic goals in a given period. The equality of the demand price and the offer price actually means that there is only one price option that is breakeven for the seller and acceptable for the buyer. And finally, if the supply price exceeds the demand price, the manufacturer will be forced to sell the volume of output he has at the demand price, incur losses, and then either try to minimize the cost or change the volume of production. And not necessarily he will choose the option of reducing production. It may turn out to be beneficial to increase it, but on one condition - if with an increase in production volumes, the unit cost of production will fall. In practice, it is difficult to calculate the offer price and the ask price at any given time. Therefore, when forming their pricing policy, the company's managers are largely forced to act "by touch", i.e. by trial and error. But this does not mean that they are free to choose a pricing strategy, because "retaliation" for any wrong pricing decision comes inevitably.

The definition of a firm's pricing strategy must be preceded by two preliminary steps. At the first stage, the analysis of the results of market research is carried out to determine its structure and the elasticity of the demand curve for products manufactured by the enterprise. The relationship between the magnitude of demand for this species product and its price reflects the demand curve, which, in accordance with the law of demand, has a negative slope. The coefficient of elasticity, which is the most important characteristic of any section of this curve, shows how many percent the demand for a given product will change if the price changes by 1%. When businesses raise or lower the price of their product, economists say that the producer is "moving" up or down the demand curve. The slope of the demand curve, or its elasticity, determines the amount of price reduction required to increase demand by 1%. If the curve is steep, then a significant price reduction is required to reach the point where demand is 1% higher. Conversely, if the demand curve is flat, you can limit yourself to only a small price decrease. Price change is the simplest mechanism for taking into account changes in demand, costs and the position of competitors. However, of all the variables that determine the magnitude of demand for a product, price changes are the easiest for competitors to duplicate. If they choose a copy strategy, this will reduce the effectiveness of the pricing policy to almost zero and may lead to a "price war".

At the second stage of the pricing policy, the strategy of the enterprise's behavior in the market is clearly defined (ensuring survival, maximizing current profits, gaining leadership in terms of sales volume or product quality, etc.). Pricing policy serves as a tool for implementing this strategy. Only after determining the configuration of the demand curve and the strategy of behavior in the market, the company can begin to choose one or another option for pricing policy. There are several basic pricing methods.

The first of them (the simplest) is to charge a certain margin on the cost of goods. For example, the production and sale of a certain product may cost the company 200 rubles, and she wants to make a profit based on the rate of 10%. In this case, the selling price of the goods will be 220 rubles. This method of pricing is used by almost all enterprises in a scarce economy, when demand obviously exceeds supply. But even in the conditions of developed money circulation, many enterprises determine the price according to the formula "costs plus profits". These primarily include monopoly enterprises, which may not worry about fluctuations in demand for their services. Surprisingly, some non-monopolists in the service sector also adhere to similar pricing principles, such as retailers. Moreover, the amount of margins of stores can vary widely depending on both their location and the type of product.

The cost-plus-profit pricing methodology remains quite popular for three reasons:

1) Sellers know more about costs than about demand. By justifying the price with costs, the seller simplifies the pricing problem for himself, since he does not have to adjust prices too often depending on demand;
2) price competition is reduced to a minimum. If all firms in an industry use this pricing method, their prices are likely to be similar;
3) the seller believes that he sets a "fair" price for both himself and the buyer.

The second method of pricing, also based on costs, is the calculation of prices that provides a certain amount of gross profit. This method is more complex but more flexible. It involves comparing different options for combinations of prices and sales volumes and choosing one that will allow you to overcome the breakeven level and get the planned profit. This method is usually used big companies with large specialized departments responsible for price marketing.

The third pricing method is to set a price close to the bid price. Marketers identify the "price ceiling" of a given product, i.e. the maximum amount consumers are willing to pay. Further, they try to maximize profits by controlling the cost price without exceeding this "ceiling". The transition of most firms from a cost-based pricing strategy to a demand-based pricing strategy is an important indicator of market competitiveness and high elasticity of demand.

The fourth method of pricing is also known - following competitors, focusing on the current price level. In markets with an oligopolistic structure (for example, steel or oil markets), the spread in prices of products offered is usually minimal. This is due to the widespread policy of copying competitors' price fluctuations. Smaller firms follow the leader, changing prices when the leader changes them, not depending on fluctuations in demand for goods or changes in their cost. Some firms may calculate their price by providing a constant discount or markup on the leader's price, depending on their product features, location, and so on. This is often done, for example, by small independent retailers of gasoline who sell it at retail for a price slightly higher than the price of the local gasoline market leader.

Changes in pricing methods should not be made too often, as this may affect all performance indicators of the enterprise and destabilize its position in the market. Using certain pricing methods, the company sets the base price of its products. However, in order to take into account short-term changes in costs, demand structure, competitive conditions and other factors, the enterprise must develop a policy of "tuning" the base price, ways to establish its final value. Businesses can apply a standard or variable pricing policy. When they strive to keep the price constant for a long time, instead of changing it (with an increase or decrease in costs), they can reduce or increase the amount of goods supplied in one package, or expand or reduce the standard set of services.

Businesses can also opt for a flat or flexible pricing policy. Under a uniform price system, a firm sets the same price for all consumers who would like to purchase a product on similar terms. The price may vary strictly in proportion to the quantity of products purchased, but not depending on who and how much is purchased. A flexible pricing policy is an adjustment to the base price by offering discounts or mark-ups. The buyer bargains with the seller, as a result of this bargaining, the final selling price is set. Previously, bargaining was the only way to set the final price. At present, in many countries, the policy of flexible pricing is significantly limited. So, Civil Code The Russian Federation expressly prohibits the selection of buyers.

The final price of the products also depends on whether the seller rounds prices. In some countries, retailers believe that the price of a product must necessarily be unrounded, for example, not $ 5, but $ 4.99. This policy is explained by the following considerations. Buyers like to get change. Since cashiers are required to give change, management ensures that transactions are properly recorded and money is placed in the cash registers. Consumers get the impression that the firm carefully analyzes its prices and sets them at the lowest possible level. In addition, consumers may have the impression that this is a price reduction.

So pricing is difficult process, during which not only objective factors (costs, demand and competition), but also many subjective manifestations should be taken into account. It consists of pricing processes individual goods and the price system as a whole, in a free market, the pricing process occurs spontaneously, prices are formed under the influence of supply and demand in a competitive environment, as well as decision-making related to setting the price of a product or service.

Pricing decisions for most products cannot be made by an enterprise without considering all aspects of marketing structure, related product prices, competitor prices, production and marketing costs of the product, demand, and pricing objectives.

Thus, in market conditions, the pricing policy of an enterprise (firm) consists of many factors related to the choice of specific pricing targets, approaches and methods for determining the prices of new and already manufactured products, services provided in order to increase sales volumes, turnover, increase production levels, maximize profits and strengthening the market position of the enterprise (firm).

Pricing in an enterprise is a complex process consisting of several interrelated stages: the collection and systematic analysis of market information.

Substantiation of the main goals of the enterprise's pricing policy for a certain period of time, the choice of pricing methods, the establishment of a specific price level and the formation of a system of discounts and price surcharges, the adjustment of the enterprise's pricing behavior depending on the prevailing market conditions.

Pricing policy is a mechanism or model for making decisions about the behavior of an enterprise in the main types of markets in order to achieve the goals of economic activity.

Tasks and mechanism for developing pricing policy.

The enterprise independently determines the scheme for developing a pricing policy based on the goals and objectives of the development of the company, organizational structure and management methods, established traditions in the enterprise, the level of production costs and other internal factors, as well as the state and development business environment, i.e. external factors.

When developing a pricing policy, the following questions are usually addressed:

in what cases it is necessary to use the pricing policy in the development;

when it is necessary to respond with the help of price to the market policy of competitors;

what pricing policy measures should accompany the introduction of a new product to the market;

for which goods from the assortment sold it is necessary to change prices;

in which markets it is necessary to pursue an active pricing policy, change the pricing strategy;

how to distribute certain price changes over time;

what price measures can be used to increase sales efficiency;

how to take into account the existing internal and external restrictions in the pricing policy entrepreneurial activity and a number of others.

Setting goals for pricing policy.

On the initial stage Developing a pricing policy, an enterprise needs to decide what kind of economic goals it seeks to achieve through the release of a particular product. Usually, there are three main goals of pricing policy: ensuring sales (survival), profit maximization, market retention.

Ensuring sales (survival) is the main goal of enterprises operating in conditions of fierce competition, when there are many manufacturers of a similar product on the market. The choice of this goal is possible in cases where consumer demand is price elastic, and also in cases where the enterprise sets the goal of achieving maximum growth in sales and increasing total profit by some reduction in income from each unit of goods. The enterprise may proceed from the assumption that an increase in sales volume will reduce the relative costs of production and marketing, which makes it possible to increase sales of products. To this end, the company lowers prices - uses the so-called penetration prices - specially lowered prices that help expand sales and capture a large market share.

Setting a profit maximization goal means that the company seeks to maximize current profit. It estimates demand and costs for different levels prices and selects the price that will provide the maximum cost recovery.

The goal pursuing the retention of the market involves the preservation of the existing position of the enterprise in the market or favorable conditions for their activities, which requires the adoption of various measures to prevent a decline in sales and aggravation of competition.

The above objectives of pricing policy are usually long-term, calculated over a relatively long period of time. Except long-term enterprise can set short-term goals of pricing policy. They usually include the following:

stabilization of the market situation;

reducing the impact of price changes on demand;

maintaining the existing leadership in prices;

limiting potential competition;

improving the image of the enterprise or product;

sales promotion for those goods that occupy a weak position in the market, etc.

Patterns of demand. The study of the patterns of formation of demand for a manufactured product is milestone in the development of the pricing policy of the enterprise. Demand patterns are analyzed using supply and demand curves, as well as price elasticity coefficients.

The less elastic demand is, the higher the price the seller can charge. And vice versa, the more elastic demand reacts, the more reason to use the policy of reducing prices for manufactured products, as this leads to an increase in sales volumes, and consequently, the income of the enterprise.

Prices calculated taking into account the price elasticity of demand can be considered as the upper limit of the price.

To assess the sensitivity of consumers to prices, other methods are also used to determine the psychological, aesthetic and other preferences of buyers that influence the formation of demand for a particular product.

Cost estimate. To implement a well-thought-out pricing policy, it is necessary to analyze the level and structure of costs, evaluate the average costs per unit of production, compare them with the planned production volume and existing market prices. If there are several competing enterprises in the market, then it is necessary to compare the costs of the enterprise with the costs of the main competitors. The cost of production forms the lower limit of the price. They determine the ability of the enterprise in the field of price changes in the competition. The price cannot fall below a certain limit, which reflects the production costs and the level of profit acceptable to the enterprise, otherwise the production is economically unprofitable.

Analysis of prices and products of competitors. The difference between the upper limit of price, determined by effective demand, and the lower limit, formed by costs, is sometimes called the price-setting entrepreneur's playing field. It is in this interval that a specific price is usually set for a particular product produced by an enterprise.

The level of the price to be set should be comparable with the prices and quality of similar or similar goods.

Studying the products of competitors, their price catalogs, interviewing buyers, the company must objectively assess its position in the market and, on this basis, adjust product prices. Prices may be higher than those of competitors if the manufactured product surpasses them in terms of quality characteristics, and vice versa if consumer properties goods are inferior to the corresponding characteristics of competitors' products, then prices should be lower. If the product offered by the enterprise is similar to the products of its main competitors, then its price will be close to the prices of competitors' products.

Enterprise pricing strategy.

The company develops a pricing strategy based on the characteristics of the product, the possibility of changing prices and production conditions (costs), the situation on the market, the balance of supply and demand.

An enterprise can choose a passive pricing strategy, following the "leader in prices" or the bulk of manufacturers on the market, or try to implement an active pricing strategy that takes into account, first of all, its own interests. The choice of pricing strategy, in addition, largely depends on whether the company offers a new, modified or traditional product on the market.

When releasing a new product, the company usually chooses one of the following pricing strategies.

Cream skimming strategy. Its essence lies in the fact that from the very beginning of the appearance of a new product on the market, the highest possible price is set for it, based on the consumer who is ready to buy the product at that price. Price cuts take place after the first wave of demand subsides. This allows you to expand the sale area - to attract new customers.

This pricing strategy has a number of advantages:

a high price makes it easy to correct a price error, as buyers are more sympathetic to lowering the price than to raising it;

a high price provides a sufficiently large profit margin at relatively high costs in the first period of product release;

the increased price makes it possible to restrain consumer demand, which makes some sense, since at a lower price the company would not be able to fully satisfy the needs of the market due to its limited production capabilities;

a high initial price helps to create an image of a quality product among buyers, which can facilitate its sale in the future with a price reduction;

a higher price increases demand for a prestige product.

The main disadvantage of this pricing strategy is that the high price attracts competitors - potential manufacturers of similar products. The cream skimming strategy is most effective when there is some restriction of competition. A condition for success is also the existence of sufficient demand.

Market penetration (introduction) strategy. To attract the maximum number of buyers, the company sets a significantly lower price than the market prices for similar products of competitors. This gives him the opportunity to attract the maximum number of buyers and contributes to the conquest of the market. However, such a strategy is used only when large volumes of production allow the total mass of profit to compensate for its losses on a separate product. The implementation of such a strategy requires material costs, which small and medium-sized firms cannot afford, because they do not have the ability to quickly expand production. The strategy works when demand is elastic, and also if the growth in production volumes reduces costs.

The psychological price strategy is based on setting a price that takes into account the psychology of buyers, especially their price perception. Usually the price is determined in the amount of just below the round sum, while the buyer is given the impression of a very exact definition production costs and the impossibility of fraud, lower price, concession to the buyer and gain for him. It also takes into account the psychological moment that buyers like to receive change. In fact, the seller wins by increasing the number of products sold and, accordingly, the amount of profit received.

The strategy of following the leader in an industry or market assumes that the price of a product is set based on the price offered by the main competitor, usually the leading firm in the industry, the enterprise that dominates the market.

A neutral pricing strategy assumes that the pricing of new products is carried out on the basis of taking into account the actual costs of its production, including the average rate of profit in the market or in the industry.

The prestige pricing strategy is based on setting high prices for very high quality products with unique properties.

The choice of one of the listed strategies is carried out by the management of the enterprise, depending on the target number of factors:

the speed of introducing a new product to the market;

market share controlled by the firm;

the nature of the goods being sold (degree of novelty, interchangeability with other goods, etc.);

payback period of capital investments;

specific market conditions (degree of monopolization, price elasticity of demand, range of consumers);

position of the firm in the relevant industry ( financial position, links with other manufacturers, etc.).

Pricing strategies for goods that have been on the market for a relatively long time may also focus on different types of prices.

The sliding price strategy assumes that the price is set almost in direct proportion to the supply and demand ratio and gradually decreases as the market is saturated (especially the wholesale price, and the retail price can be relatively stable). This approach to setting prices is most often used for products of mass demand. In this case, prices and volumes of output of goods closely interact: the larger the volume of production, the more opportunities the enterprise (firm) has to reduce production costs and, ultimately, prices. A given pricing strategy needs to:

prevent a competitor from entering the market;

constantly take care of improving the quality of products;

reduce production costs.

The long-term price is set for consumer goods. It acts, as a rule, for a long time and is slightly subject to changes.

The prices of the consumer segment of the market are set for the same types of goods and services that are sold by different social groups people with different levels of income. Such prices can, for example, be set for various modifications of cars, air tickets, etc. It is important at the same time to ensure the correct ratio of prices for various products and services, which is a certain difficulty.

A flexible price strategy is based on prices that respond quickly to changes in the balance of supply and demand in the market. In particular, if there are strong fluctuations in supply and demand in a relatively short time, then the use of this type of price is justified, for example, when selling certain food products (fresh fish, flowers, etc.). The use of such a price is effective with a small number of levels of the management hierarchy in the enterprise, when the rights to make decisions on prices are delegated to the lowest level of management.

The preferential price strategy provides for a certain reduction in the price of goods by an enterprise that occupies a dominant position (market share of 70-80%) and can provide a significant reduction in production costs by increasing production volumes and saving on the costs of selling goods. The main task of the enterprise is to prevent new competitors from entering the market, to make them pay too high a price for the right to enter the market, which not every competitor can afford.

The strategy of setting prices for products discontinued from production does not involve selling at reduced prices, but targeting a strictly defined circle of consumers who need these particular products. In this case, the prices are higher than for ordinary goods. For example, in the production of spare parts for cars and trucks of a wide variety of makes and models (including discontinued).

There are certain features of setting prices that serve foreign trade turnover. Foreign trade prices are determined, as a rule, on the basis of the prices of the main world commodity markets. For exported goods within the country, special prices are set for export delivery. For example, for engineering products supplied for export, premiums were applied to wholesale prices for export and tropical execution until recently. For some types of scarce products, when delivered for export, prices are added customs duty. In many cases, free retail prices are set for imported consumer goods based on the balance of supply and demand.

Choice of pricing method.

Having an idea of the patterns of formation of demand for goods, the general situation in the industry, prices and costs of competitors, having determined its own pricing strategy, the enterprise can proceed to the choice of a specific pricing method for the manufactured goods.

Obviously, a correctly set price should fully compensate for all the costs of production, distribution and marketing of goods, and also ensure a certain rate of profit. Three pricing methods are possible: setting a minimum price level determined by costs; setting a maximum price level formed by demand, and, finally, setting optimal level prices. Consider the most commonly used pricing methods: "average cost plus profit"; ensuring break-even and target profit; setting a price based on the perceived value of the product; setting prices at the level of current prices; method of "sealed envelope"; price setting based on closed auctions. Each of these methods has its own characteristics, advantages and limitations that must be kept in mind when developing a price.

The simplest is the “average cost plus profit” method, which consists in charging a markup on the cost of goods. The mark-up value can be standard for each type of product or differentiated depending on the type of product, unit cost, sales volumes, etc.

The manufacturing enterprise itself must decide which formula it will use. The disadvantage of the method is that the use of a standard margin does not allow, in each specific case, to take into account the characteristics of consumer demand and competition, and, consequently, to determine the optimal price.

Yet the markup methodology remains popular for a number of reasons. First, sellers are more aware of costs than they are of demand. By tying price to cost, the seller simplifies the pricing problem for himself. He does not have to frequently adjust prices depending on fluctuations in demand. Secondly, it is recognized that this is the most fair method in relation to both buyers and sellers. Thirdly, the method reduces price competition because all firms in the industry calculate the price according to the same “average cost plus profit” principle, so their prices are very close to each other.

Another cost-based pricing method is aimed at achieving a target profit (break-even method). This method makes it possible to compare profits at different prices, and allows a firm that has already determined its own rate of return to sell its product at the price that, under a given program of output, would achieve the maximum extent of this task.

In this case, the price is immediately set by the firm based on the desired profit. However, in order to recover production costs, it is necessary to sell a certain volume of products at a given price or at a higher price, but not a smaller amount. This is where the price elasticity of demand is of particular importance.

This pricing method requires the firm to consider different price options, their impact on the sales volume needed to break even and achieve a target profit, and analyze the likelihood of achieving all this at each possible price of the product.

Pricing based on the "perceived value" of a product is one of the most ingenious methods of pricing, with an increasing number of firms starting to base their pricing on the perceived value of their products. AT this method cost benchmarks fade into the background, giving way to the perception of buyers of the goods. To form in the minds of consumers ideas about the value of goods, sellers use non-price methods of influence; provide after-sales service, special guarantees to customers, the right to use a trademark in case of resale, etc. The price in this case reinforces the perceived value of the product.

Setting prices at the level of current prices. By setting a price based on the level of current prices, the firm is mainly based on the prices of competitors and pays less attention to indicators of its own costs or demand. It may charge a price above or below the price of its main competitors. This method is used as a price policy tool primarily in those markets where homogeneous goods are sold. A firm that sells similar products in a highly competitive market has very limited ability to influence prices. Under these conditions, in the market of homogeneous goods, such as food products, raw materials, the company does not even have to make decisions on prices, its main task is to control its own production costs.

However, firms operating in an oligopolistic market try to sell their goods at a uniform price, since each of them is well aware of the prices of its competitors. Smaller firms follow the leader, changing prices when the market leader changes them, and not depending on fluctuations in the demand for their goods or their own costs.

The pricing method based on the level of current prices is quite popular. In cases where the elasticity of demand is difficult to measure, it seems to firms that the level of current prices represents the collective wisdom of the industry, the guarantee of a fair rate of return. And besides, they feel that sticking to the level of current prices means maintaining a normal balance within the industry.

Sealed envelope pricing is used, in particular, when several firms compete with each other for a machinery contract. This happens most often when firms participate in tenders announced by the government. The tender is the price offered by the company, the determination of which proceeds primarily from the prices that competitors can charge, and not from the level of their own costs or the magnitude of demand for the goods. The goal is to get a contract, and so the firm tries to set its price at a level below that offered by competitors. In those cases where the firm is deprived of the ability to anticipate the actions of competitors in prices, it proceeds from information about their production costs. However, as a result of the information received about the possible actions of competitors, the company sometimes offers a price below the cost of its products in order to ensure full production load.

Closed bidding pricing is used when firms compete for contracts during bidding. At its core, this pricing method is almost no different from the method discussed above. However, the price set on the basis of closed auctions cannot be lower than the cost price. The goal pursued here is to win the auction. The higher the price, the lower the probability of receiving an order.

Having chosen the most suitable option from the methods listed above, the firm can proceed to the calculation of the final price. At the same time, it is necessary to take into account the psychological perception of the price of the company's goods by the buyer. Practice shows that for many consumers the only information about the quality of a product lies in the price, and in fact the price acts as an indicator of quality. There are many cases when, with an increase in prices, the volume of sales increases, and, consequently, production.

Price modifications.

The enterprise usually develops not a single price, but a system of price modifications depending on various market conditions. This pricing system takes into account the features quality characteristics product, product modifications and assortment differences, as well as external factors implementation, such as geographical differences in costs and demand, the intensity of demand in certain market segments, seasonality, etc. Various types of price modifications are used: a system of discounts and surcharges, price discrimination, stepwise price reductions for the proposed range of products, etc.

Price modification through a discount system is used to incentivize buyer action, such as purchasing, larger lots, contracting during sales downturns, etc. In this case, different discount systems are used: cash discount, wholesale, functional, seasonal, etc.

Cash discounts are discounts or reductions in the price of goods that encourage payment for goods in cash, in the form of an advance or prepayment, and also before the deadline.

Functional, or trade discounts are provided to those firms or agents that are part of the sales network of the manufacturing enterprise, provide storage, accounting for commodity flows and sales of products. Usually, equal discounts are used for all agents and firms with which the company cooperates on an ongoing basis.

Seasonal discounts are used to stimulate sales during the off-season, i.e. when the demand for the product falls. In order to maintain production at a stable level, the manufacturer may provide post-season or pre-season discounts.

Modification of prices for sales promotion depends on the goals of the company, the characteristics of the product and other factors. For example, special prices may be set during certain events, for example, seasonal sales, where prices are reduced for all seasonal goods, exhibitions or presentations, when prices may be higher than usual, etc. To stimulate sales, bonuses or compensation to the consumer who bought the product in retail and sent the corresponding coupon to the manufacturing enterprise; special interest rates when selling goods on credit; warranty terms and contracts maintenance etc.

Modification of prices on a geographical basis is associated with the transportation of products, regional characteristics of supply and demand, the level of income of the population and other factors. Accordingly, uniform or zonal prices may apply; taking into account the costs of delivery and cargo insurance based on practice foreign economic activity the FOB price is used, or the system of franking (ex-stock of the supplier, ex-car, ex-border, etc.).

It is customary to talk about price discrimination when a company offers the same products or services at two or more different prices. Price discrimination manifests itself in various forms depending on the consumer segment, product forms and applications, company image, sales time, etc.

A stepwise reduction in prices for the proposed range of goods is used when the company produces not individual products, but entire series or lines. The company determines which price steps to enter for each individual product modification. At the same time, in addition to the difference in costs, it is necessary to take into account the prices of competitors' products, as well as the purchasing power and price elasticity of demand.

Modification of prices is possible only within the upper and lower limits of the set price.

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How to determine the pricing policy of the enterprise. Pricing policy and pricing strategy

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